If you are considering filing for bankruptcy, it is important to hire a bankruptcy attorney as they can help guide you through the bankruptcy process and give you legal advice. A bankruptcy attorney can be very helpful if you are considering a chapter 7 bankruptcy, which is a less common filing. There are many attorneys that specialize in different types of bankruptcy including personal bankruptcy, business bankruptcy, and debt bankruptcy. A good bankruptcy attorney will be able to guide you through the filing process and give you the best advice.
A bankruptcy attorney can help guide you through the filing process and help sort out your debts. They will also have information on how chapter 13 will work, which assets you can keep, and what debts you cannot keep. A good bankruptcy attorney will also know when you should file for chapter thirteen and when to file for chapter eight. They will have information on how to negotiate when settling debts and on how to deal with collectors.
Part of what a bankruptcy attorney can do is represent their client in negotiations with the debtor. This is because most people who file for bankruptcy protection do not have a lot of money. The attorney will be able to represent their client in negotiating smaller payments and getting interest rates lowered. Some attorneys will even go so far as to get a reduction on the amount of money they are asking the debtor to pay or get them to forgive a portion of the debt.
Since there are so many legal matters involved in a bankruptcy, an attorney is very valuable when it comes to real estate, automobiles, jewelry, antiques, artwork, collectibles, and other items the debtor owns. There are many things the attorney can advise the debtor on such as whether or not to sell lease back, or liquidate their belongings. Another thing a good bankruptcy attorney can do for their client is to give them legal advice about whether or not they can accomplish a trust deed or a revocable living trust. This advice could save the client thousands or millions of dollars.
If there are unsecured debts the attorney will also give legal advice about how to get those debts settled. For example, if the debtor owes money to credit card companies that are not protected by the bankruptcy court, the attorney may suggest that they take out a loan in order to clear the debts. Once they have paid the money off, they will be debt free and no longer have to worry about creditors trying to collection debts that are still owed. This is the best way to achieve financial security.
A fresh start is another reason to consult with a bankruptcy attorney. There are too many people with debt problems who think that it is alright to wait until their debts grow large enough to require legal action. This waiting period can result in a reduction in paying a principle, a balloon payment, a missed payment, or a trustee sale. While it can be comforting to know that a legal procedure has been undertaken to resolve debt problems, in reality it can cause more problems than it solves.
Most creditors won’t agree to settle debts without some form of compensation. While this is generally the case, a bankruptcy attorney can negotiate for a settlement that satisfies both sides. The debtor can also choose not to file bankruptcy if they see this as a wasted effort. In some cases, the creditor might agree to accept a reduced amount that can be paid over time.
Finally, most people who are facing the legal process of filing for bankruptcy do not know where to turn when they need the services of an attorney. An experienced attorney will understand the importance of a sound plan for repayment and will know what to ask for in negotiating settlements with individual creditors. When a professional lawyer is hired, there is no risk that the debtor will be charged for services. Also, any information that is needed for the legal process to be completed efficiently can be easily obtained from the lawyer. The attorney can explain everything from options available to how the process works to potential benefits of entering a chapter 7 bankruptcy program.